Palm Oil Market Positing In Coming Days

Malaysian oil

Palm OIl (B- Trams ):We have seen a huge volatility in the palm market. Within a week, we have seen prices up down by almost $200. Indonesia  has increased the DMO from 20% to 30% which will tighten the export of palm oil.

Today, we seen mkt dropping by almost 8-9% ad rumors is out that Indonesia might revise the DPO and DMO. At the same time, rumors that Indonesia  Govt has approved some Export permits. However, I see palm oil price to remains strong and I expect it to recover into the Rm7000 again on the spot month.

The reason is Indonesia, the DMO is being distributed very slow. Price is still high. Price might still be volatile and it’s all due to what policy is being put forward. On the positive towards prices is if local indo prices is still high, i suspect govt might still increase the DMO Percentage (%) upwards until local prices is at reasonable levels.

This will continue to boost prices. However, as external mkt like oil and other edible oils fundamental is losing ground, it is not helping prices.

With rumors that Indonesia  might weak the DPO and DMO, it is giving bearish sentiments to the prices. Overall, I am still a believer that prices might be pushed up again into rm7000 for the spot…

About Abdul Hameed

Abdul Hameed is a (B-Trams) Researcher & Analyst Of Palm Oil Market. also Director OF Sales At Manzoor trading. Co.

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